Lloyds launches £175 switching offer in February 2025

Customers can receive a boost of £175, alongside a range of other perks, by switching their current account to Lloyds Bank.

Several banks have introduced a cash incentive for switching to their current accounts in recent weeks, including TSB and The Co-operative Bank.

Lloyds Bank now joins these providers as it launched its own £175 switching bonus today (18 February 2025).

To receive this cash bonus, customers need to switch their existing current account to any Club Lloyds current account (including the Silver and Platinum accounts) between 18 February and 1 April 2025.

You need to transfer at least three Direct Debits as part of the switch and those moving to Lloyds from a different bank must use the Current Account Switch Service.

Once the switch is complete, you should receive the £175 cash bonus in your account within three days.

Bear in mind that anyone who has previously received a current account switching offer since April 2020 from Lloyds Bank, Halifax or Bank of Scotland won’t be eligible for this latest offer.

Is it worth switching?

“The switching offer from Lloyds Bank is attractive, particularly as it’s available to both new and existing customers who switch to a Club Lloyds account,” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, commented.

“There are other current account providers offering £175 as a switching cash perk, some of which are on accounts that do not carry a monthly account fee. However, each account which offers a free cash sweetener will need to be compared carefully to see which is the most suitable deal for someone’s everyday needs,” she noted.

While the Club Lloyds account charges a £3 monthly fee, you can avoid paying it by adding a total of £2,000 or more to your account each month. This could be from your salary, pension or other deposits.

The Club Lloyds Silver and Club Lloyds Platinum accounts charge additional monthly fees of £11.50 and £22.50 respectively, in exchange for further benefits including a range of insurance.

The perks continue

After you receive the £175 bonus in your account, there are still other benefits you can get from a Club Lloyds account.

For example, if you pay out two Direct Debits from your account each month, you can earn interest on your current account balance. Balances between £1 and £3,999.99 can receive 1.50% AER while balances between £4,000 and £5,000 can receive 3.00% AER.

As an additional perk, customers can also choose from a range of “Lifestyle Benefits” each year, such as a subscription to Disney+ for 12 months, free Vue or Odeon cinema tickets, a magazine subscription or a Coffee Club and Gourmet Society membership that can give you discounts on certain food and drink locations.

Furthermore, with Everyday Offers, you could receive up to 15% cashback on your spending at selected retailers.

And, if you’re planning to travel abroad this summer, all Club Lloyds customers will be able to use their debit card to spend and withdraw cash overseas without paying any card fees. Note that this benefit only applies to Club Lloyds customers from 14 April 2025.

Club Lloyds customers can also get exclusive access to competitive products, including the Club Lloyds Monthly Saver that currently pays 6.25% AER (fixed for 12 months). This is a regular savings account that requires you to deposit between £25 and £400 each month and allows you to withdraw your money if you choose.

The interest rate on this account compares favourably to other regular savings accounts and, as it pays a fixed rate of interest, it could be an appealing option if savings rates continue their downwards trend.

What other switching offers are available?

If the Club Lloyds switching offer isn’t right for you, there are other banks offering cash incentives for switching to their current accounts.

For example, Nationwide BS and first direct also offer a £175 switching bonus on their current accounts.

Meanwhile, The Co-operative Bank offers a switch incentive of £150 while TSB offers a slightly larger incentive of £160. However, these banks both pay their bonuses in instalments, so you would only receive the full sum after three months and six months respectively.

“Current account holders should make it a habit to regularly assess the costs and benefits of their bank accounts to determine if it’s worth keeping or ditching. Benefits are great, but only if fully utilised on a regular basis,” Springall remarked.